Punky sapwood but still holding bark?

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WhiteMike

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I have some Douglas fir with ~1” of sapwood rot right underneath the bark. The heartwood is fine. Why is timber with a punky ring holding onto bark? Especially when the wood that the bark is holding onto is rotten. I split and stacked it with other wood to be used in winter of ‘25. Will the bark fall off eventually as the wood cures? Seems strange to me
 
A lot of time the punky sapwood and bark fall off when the log gets split. I compost it and call it 'splitter frass'.

If it doesn't fall off and I'm selling the firewood I split it off with the splitter.
 
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